DEX in the City: KelpDAO vs. LayerZero: Who Is Liable When a DeFi Protocol Is Hacked?

A $300M bridge exploit is forcing the question DeFi has been avoiding: when users lose money, who is actually responsible — the protocol, the infrastructure provider, or both? Thanks to our sponsors! *⁠ As Bitcoin's application layer, Citrea gives you access to the first trust-minimized BTC on a fully programmable platform and a native stablecoin for Bitcoin, ctUSD. You can now participate in Bitcoin capital markets with lending, privacy, payments, Bitcoin yield, trading and predictions. You get expanded Bitcoin utility without sacrificing its security. ⁠Citrea mainnet is live. Put your BTC to work at ⁠⁠citrea.xyz/unchained.⁠ *⁠ Nexo is the premier digital wealth platform. Receive interest on your crypto, borrow against it without selling, and trade a range of assets. Now available in the U.S with 30 days of exclusive privileges. Get started at A $300 million bridge exploit at Kelp DAO has put DeFi's most uncomfortable question back on the table: when users lose money, who is actually responsible? Katherine, Jessi, and Vy dig into the Kelp and Layer Zero finger-pointing and ask whether the industry's core values — permissionlessness, open composability — have become its greatest vulnerability. Then: the Ninth Circuit heard oral arguments on prediction markets last week, and the panel's pointed questions signal the case is headed to the Supreme Court sooner than most expect. Finally: American Express just solved three of agentic commerce's hardest problems — identity, mandate, and accountability — with a product that's live today. The crypto industry, which should be leading this race, is watching from the sidelines. Hosts: ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Katherine Kirkpatrick Bos⁠⁠, General Counsel at StarkWare. Previously held senior legal roles across DeFi and centralized exchanges. ⁠⁠⁠⁠⁠⁠⁠⁠⁠Jessi Brooks⁠⁠⁠⁠⁠⁠⁠⁠⁠, General Counsel at Ribbit Capital ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠TuongVy Le⁠⁠⁠, General Counsel at Veda Learn more about your ad choices. Visit megaphone.fm/adchoices

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DEX in the City: KelpDAO vs. LayerZero: Who Is Liable When a DeFi Protocol Is Hacked? is an episode from Unchained by Laura Shin.

This episode is 47:42 long.

This episode was published on Apr 24, 2026.

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